Bitcoin BTCUSD Bullish Hammer - Bottom of a downtrend. How2Trade
For Bitcoin, currently, when we look at the BTCUSD price on a weekly chart, we can see that on the week of 16th December 2019 Bitcoin price action put in a Hammer on the weekly close.
How to recognise a Hammer?
A preceding downtrend,
It looks like a square lollipop with a long stick,
Has a tiny body,
Has no or little upper shadow,
The lower shadow is at least twice of the length of the real body.
Whats the psychology behind the Hammer?
It tells us that the Bulls are strong enough to conquer the Bears who once dragged the price so low.
How do we trade the Hammer?
Look for the hammer at the bottom of a downtrend.
(this was already confirmed seen BTCUSD 16th Dec 2019 Weekly Chart)
Wait for the next candle to close above the high of the Hammer to confirm existence of bullish force.
(this was already confirmed seen BTCUSD 06th Jan 2020 Weekly Chart)
Look for going long opportunities upon confirmation as the potential turn of the trend to Up-Trending dominance, with stops placed below the low of the Hammer.
(current candle BTCUSD 13th Jan 2020 Weekly Chart)
As a Day Trader, I will be looking for going long opportunities upon the possibility of a daily close candle above the Macro, major resistance trend-line level of around 8100BTCUSD- within the next 2 day’s.
I will also be watching for any Break-downwards signals and/or a continuation of the Ranging Trend.
BTCUSD
How to recognise a Hammer?
A preceding downtrend,
It looks like a square lollipop with a long stick,
Has a tiny body,
Has no or little upper shadow,
The lower shadow is at least twice of the length of the real body.
Whats the psychology behind the Hammer?
It tells us that the Bulls are strong enough to conquer the Bears who once dragged the price so low.
How do we trade the Hammer?
Look for the hammer at the bottom of a downtrend.
(this was already confirmed seen BTCUSD 16th Dec 2019 Weekly Chart)
Wait for the next candle to close above the high of the Hammer to confirm existence of bullish force.
(this was already confirmed seen BTCUSD 06th Jan 2020 Weekly Chart)
Look for going long opportunities upon confirmation as the potential turn of the trend to Up-Trending dominance, with stops placed below the low of the Hammer.
(current candle BTCUSD 13th Jan 2020 Weekly Chart)
As a Day Trader, I will be looking for going long opportunities upon the possibility of a daily close candle above the Macro, major resistance trend-line level of around 8100BTCUSD- within the next 2 day’s.
I will also be watching for any Break-downwards signals and/or a continuation of the Ranging Trend.
BTCUSD
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